BG. Gas prices over 14% up recently with more to come - global LNG expanding and further exploration rights --- about to break out.

http://www.moneyam.com/action/news/showArticle?id=989336

dikytree.

A number of commentators including brokers and press have become more bullish on the big energy stocks and both BG. and RDSB (Royal Dutch Shell) have been beneficiaries, especially the latter- currently 2115p. It may be becoming more likely that RDSB will make a bid for BG. currently 833p. As mentioned in the press etc; Shell would be happy to sweep in BG. for its pure oil and gas business especially now that its distribution side was hived off some years back to form Centrica. BG is enlarging its Liquified Natural Gas business by investing in more infrastructure and shipping. It is felt by many that a majority of its reserves are located in countries that are less likely to nationalise their oil and gas assets. There has been much comment about Shell's need to increase its oil and gas reserves and the difficulties it has experienced with the Russian authorities and the trouble in Nigeria continues to persist. Shell has a significant interest in Canada's oil sands which I dont think come into the reserve calculations but, it costs about US$40 per barrel to extract. Both companies throw off cash and it wouldn't surprise me to see these two consolidate together over the next year. I am a holder of both companies' shares.

I continue to hold both Royal Dutch Shell and BG. Both took heavy hits on the market fall out. It is felt in many quarters that as both stocks are easy to sell in size to raise cash, the selling was over done. Both stocks have shown a measure of recovery, and I continue to hold. I see that some commentators feel the oil price will hit us$100 over the next year or so.

BG Group upgraded
MoneyAM
Credit Suisse has upgraded BG Group to 'outperform' from 'neutral' with a new target of 1,100p.

This comes after tests revealed significant oil and gas reserves at a field in Brazil's Santos Basin, in which BG Group holds a 25% stake.

In a note to clients, Credit Suisse said it raised its target on the back of the increase in reserves, which it said will lead to higher liquefied natural gas earnings & upstream reserve growth by 2009.

The news led Deutsche Bank to raise its target to 1,090p from 925p and reiterate its 'buy' rating on the company.

The broker said not only does it suggest a potential 40% increase in the group's resource base and the underpinning of growth through the next decade, it also adds about 120p to fair value and substance to its speculative attractions.

The Tupi prospect, an offshore oil and gas discovery operated by Brazil's state-owned energy group Petroleo Brasileiro SA (Petrobras), is believed to be holding recoverable reserves of 5-8 bln barrels of oil equivalent, Petrobras and Galp Energia SGPS said in separate statements.

Petrobras owns a 655 stake in the project and Galp Energia owns 10%.


sp currently 1033p. Looking good for BG. and its exploration success is a good defense against any prospective bid. Solid hold.

This should rebound very strongly, broker upgrade this morning, but with this market nothing makes sense any more.

For the longterm, I can see this climbing (not in a straight line) up to 20, (a bit like SIA), boy ! is it possible that this lovely mid-size oil company could be of interest to one of the big boys like Shell, BP, etc...?, its got assets the world over !

I thought Shell would have been the likely predator but I think I read in the press somewhere that Chinese interests have bought a stake or rumoured to have done so?

Well whatever, it does look promising ; the number of drilling and producing activities that this company is involved in is incredible !

Doing fine !, as long as oil and gas remain high : I can see this hitting the 13 mark before the summer !

I do tend to stick longer term with my investments but, the sp does remain very firm and I would not bet against your statement required field.

Great day for the sp....I can see this being at least 15 by the end of the year, no problem....once again...great stock for an Isa (longterm).

Huge increase at start...???? 7%...!!!

required field :-

STOCKWATCH BG, Galp, Repsol seen boosted by Sugar Loaf reserves news




LONDON (Thomson Financial) - Shares in BG, Galp and Repsol are expected to
get a boost in opening deals the head of Brazil's National Petroleum Agency said
overnight that the Sugar Loaf structure in the Santos Basin could contain 33
billion barrels of oil equivalent -- five times the size of Tupi -- which would
make it the biggest discovery in 30 years

Thanks skinny...in that case this will be a 20 stock within 2 years sure !

Doesn't always pay to get too excited but, the outlook does look favourable.

I'm convinced that this will be 15 by mid-summer and this will be a 20 stock at some stage....and how about a takeover target ...with the Brazilian discoveries and if I was one of the really big boys : I would snap this up before we hit the 20 mark !

Went ex-divi recently, so a slight dip was to be expected:
"a final dividend in respect of the year ended 31 December 2007 of 5.76 pence per ordinary share payable on 23 May 2008 to holders of ordinary shares on the register of shareholders of the Company at the close of business on 11 April 2008."
Onwards & upwards hopefully. Am happy to hold for the foreseeable future.

For reference on Substantial shareholdings as per 2007 Report & Accounts

Legal and General Gp and subsidiaries 181,148,616 shs------5.42%

BG. taking a bit of a knock today....hope that the drop will stop soon....if it wasn't for the takeover we would be over 14 !.

Yes, as is usual, the bidder's sp takes a bit of a drop, while the target company's sp takes a nice boost:

"LONDON (Thomson Financial) - Shares in BG Group Plc. fell after it launched a $12 billion all-cash takeover bid for Australia's Origin Energy Ltd., overshadowing the UK natural gas producer's forecast-beating first quarter earnings.

BG offered to pay A$14.70 for each Origin share, 40 percent above the group's Tuesday closing price. It plans to use debt and existing cash to finance the acquisition.

Origin, Australia's second-largest energy retailer, said it has not yet considered the proposal and discussions with BG are to take place shortly.

At 1.25 p.m., BG shares were down over 5 percent at 1,241 pence following the bid, which Dresdner Kleinwort described to be an 'aggressive step up' in BG's Australian ambition.

Given the scale of the offer, investors are waiting for a 'convincing explanation' from BG, the broker said."

Finished up !, (a fraction), great stock this...I'm repeating myself but can see this hitting 15 during the summer and then later 20 when the Brazilian assets are flow tested !